M&CC goes after five city businesses owing over $1B in rates

Apr 05, 2017 News

A cash-strapped Mayor and City Councillors of Georgetown (M&CC) has initiated legal proceedings against five businesses which reportedly owe over $1B in rates.

A cash-strapped City Hall has announced plans to go after five businesses that owe over $1B in rates.

According to the council in a statement, the companies which owe include Continental Agency of 12 West Ruimveldt Industrial Site; Ashmins Trading Company of 43-47 High Street, Werk-en-Rust; the Georgetown Fisherman Coop, Meadow Brook/Houston; the Milk Plant, 1 Cowan Street, Kingston and Vernan Garraway (Shoppers Paradise) of 104 Regent Street, Lacytown.
According to the council, the decisions were taken pursuant to sections 219 (1), 220, 221 and 222 of the Municipal District and Councils Act, Chapter 28:01.
M&CC, which is struggling for cash to run the city, said that in addition, a number of corporations and companies have been undervaluing their properties and have been paying less than the required amounts.
“Some corporations continue to pay residential rates on properties while operating massive commercial activities using those properties of which council is concerned. The City Council is contemplating ways of addressing this increasingly worrying practice of some businesses as a matter of urgency.”
M&CC stressed that it needs all of its monies to provide vital municipal services to citizens in local communities.
“These include garbage collection and disposal, construction and maintenance of roads, drains, street lights, markets, parks and open green spaces, cemeteries, public health and environmental services, enforcement of the city’s by-laws.”
According to the council, in order for it to provide all the services which are necessary to secure the integrity and general environment of the city of Georgetown, it needs the resources.
“The one that is particularly important to us at this point in time in the context to good environmental management and governance is the collection and disposal of garbage collection. The cost to provide this service is more than forty-eight million dollars a month.”
M&CC also disclosed that the collection and disposal of garbage in the city is becoming increasingly expensive because of a number of reasons including changing demographics, climate change and global warming, change of consumption, consumerism, changes in the type of garbage generated by local commercial activities, in the particular situation where individuals are using more foods and beverages that are imported with excessive wrapping and purchasing materials some of which are non bio-degradable.”
M&CC said it is appealing to all property owners to settle their accounts.
“Those who are experiencing financial difficulties can feel free to come in and talk with the trained staff at the City Treasurer’s Department. The Mayor and City Council remains committed to delivering to all citizens a city that is safe, healthy and prosperous.”
Under the laws, M&CC after a period of three months has elapsed after default can institute proceedings for the recovery of the rates.
“Rates shall be recoverable from the person liable for the payment thereof-
(a) as a civil debt, irrespective of the amount, under the Summary Jurisdiction (Petty Debt) Act; (b) by distraint under section 221 on movable property of the person liable, whether such movable property is situated on the property in respect of which the rates are due of elsewhere;
(c) by pirate execution under section 222, where the property in respect of which the rates are due is immovable property.”
City Hall has been battling cash problems with poor systems, corruption and non-collections affecting performance.
A recent attempt to raise monies by installing parking meters in the City Hall, via a private company, stalled after weeks of protests and suspension from government. There were questions over the way the contract was procured as well as rates.

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